During $2024,$ its first year of operations, Baginski Steel Corporation reported a net operating loss of $\backslash$$$450,000$ for financial reporting and tax purposes. During $2025,$ Baginski reported income of $\backslash (\backslash$$ $250,000\backslash )$ for financial reporting and tax purposes. The enacted tax rate is $\backslash (25\backslash \%\backslash ).$

Required:

$1.$ Prepare the journal entry to recognize Baginski's $2025$ tax expense or tax benefit.

$2.$ Show the lower portion of the $2025$ income statement that reports income tax expense or benefit.

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Prepare the journal entry to recognize Baginski's $2025$ tax expense or tax benefit.

Note: If no entry is required for a transaction$/$event$,$ select $"$No journal entry required" in the first account field.

Journal entry worksheet

$1$

Record $2024$ income tax benefit from operating loss.

Note: Enter debits before credits.